DETERMINANT OF ALLOCATIVE EFFICIENCY AMONG RAINFED RICE FARMERS IN ARDO-KOLA AND JALINGO LOCAL GOVERNMENT AREAS OF TARABA STATE, NIGERIA

Abstract

The study determined allocative efficiency among rainfed rice farmers in Ardo-kola and Jalingo local government area of Taraba State, Nigeria. The objectives of the paper were to determined allocative efficiency of rice farmers in the study area. Purposive and simple random sampling techniques were used to collect data from 180 rice farmers through a structured questionnaire. Both descriptive statistics and stochastic frontier approach were used to analyze data collected. Diagnostic statistic, gamma (0.856) and sigma squared (0.191) were statistically significant at P≤ 0.01. probability level. The result further revealed that cost of seed and cost of fertilizer were significant at P≤ 0.01, while cost of family labour and cost of agrochemicals were significant at P≤ 0.05. The mean allocative efficiency (AE) is 0.89. The study also revealed that education, age and extension contact and gender increases allocative efficiency of rice farmers in the study area. The study recommends diversification of income, especially to rice farmers with large household size. However, farmers should be encouraged with improved facilities either from government and non-governmental agencies.